Extending Wall Street's bipolar price action of late, U.S. stocks reversed Wednesday's trajectory to take a manic turn today. Along with a well-received earnings report from Cisco Systems (CSCO), the bulls celebrated a drop in initial jobless claims, which fell beneath the closely watched 400,000 marker for the first time in months. By the time the dust settled, the Dow Jones Industrial Average (DJIA) added more than 420 points, or nearly 4%, marking its fourth straight absolute move of 3.5% or more -- a feat not accomplished since November 2008, according to Schaeffer's Quantitative Analyst Chris Prybal. What's more, should the blue-chip barometer extend its see-saw momentum tomorrow, a similarly significant move in either direction would tie the record set in October 1987.
The Dow Jones Industrial Average (DJIA – 11,143.31) recovered most of Wednesday's losses, adding 423.4 points, or nearly 4%, to reclaim the 11,000 level. For the second time this week, all 30 of the Dow's blue chips finished higher, led by CSCO's near-16% gain. In fact, all of the index's components have ended in unison each day this week.
Similarly, the S&P 500 Index (SPX – 1,172.64) reversed yesterday's deficit -- almost exactly -- advancing 51.9 points, or 4.6%. Finally, the Nasdaq Composite (COMP – 2,492.68) fared the best of the three, thanks to earnings-related optimism in the tech sector. Specifically, the COMP gained 111.6 points, or 4.7%, after running into a wall near the 2,500 level.
HAPPY TRADING
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